Real Estate Stories That Show You
by Dan Auito
Let’s begin easing you out of the pits.
I mean, comfort zone! I’m going to slowly and methodically give you as
many little sparks and insights to the relatively simple ways that
ordinary people use real estate to achieve extraordinary results.
Stories are the best spark plugs. They
let you casually observe from a safe, secure and understandable view
point. I will write to answer most of the questions that I feel I myself
would ask if I was reading what you are about to read.
I want you to know something from the
very start of this report and that something is this: I care about you
and I sincerely mean that. I really do want you to move to a new comfort
zone, one that is pleasurable and free from fear. A place where you
realize you have the power to achieve greater things than you currently
It’s possible for you to start being a
more powerfully directed purpose-driven individual who is well organized
and on track to higher achievement. You will change and grow, slowly and
steadily with every page you read. With every thought and insight you
gain, your desire and courage will grow as well.
Napoleon Hill wrote one of the greatest
books of all time. It’s called “Think and Grow Rich.” The essence of
that book, the secret it reveals time and again is this: you must
develop a burning desire.
Don’t put this book down thinking the
previous statement is cliché and that you already knew that! I am simply
leading you to my next point, the next point being is – your desire
needs a starting point. So to start developing desire, my secret is you
must have a purpose. Why do you want to pursue real estate? I know what
you’re thinking: to make money, to have security, to feel useful and
appear successful. Good points. I agree you can have all of that and
more if that is what you desire.
Now here is something that comes before
any of those things you desire. What is the purpose of all those things?
Purpose, purpose, purpose…you need to first define purpose before you
get the things. My purpose, or so I thought early in my career, was to
move up to a nicer house and have my first house become my first rental
property. When I moved up to the next one, I quickly learned as soon as
I rented it out, I was in some way responsible for creating happiness
and security in the life of another person that was of no relation to
It soon was evident to me how the
choices I made in choosing that first property either would help me or
hurt me in my quest to succeed in the real estate investment business.
All of it is cumulative, everything you
do and how you do it adds up. It compounds itself and it either makes
your life easier or more difficult. I am going to give you experiences
that you can learn from that will make your life easier; I am going to
show you how. That is my purpose.
The book that gave me the unknowing
courage to take my first steps in real estate was a book called “How I
Turned $1000 into $3 Million in real estate in my spare time” by William
Nickerson. He was a master storyteller and by osmosis, after reading his
book, I found myself gravitating towards the real estate classified
section of my Sunday paper.
Eventually I leapt and my life had
changed. It was an FHA foreclosure, a two-bedroom, one-bath home with a
built-in, screened-in pool, with a Jacuzzi and a built-in sprinkler
system. I bought it for $46,000 and used the HUD 203K rehab program to
fix it up. I spent $16,000 to update and make repairs. They then gave me
one loan for a total of $62,000. It took me three months to complete it
and I was in; I had done it!
My life changed, I learned, I took the
leap. From then on I had confidence. I had already had my first home but
now I had two. Well, I was in the Coast Guard and wouldn’t you know,
three months later we moved. Uncle Sam took me out of St. Petersburg,
Florida and dropped me in Kodiak, Alaska, for my next tour of duty.
Well guess what? I was armed with
ambition, courage, confidence and just enough knowledge to be considered
dangerous, so I bought a duplex as soon as I came ashore on Kodiak
Island. Now I had three dwellings and my relationships and
responsibilities were growing with my new tenants counting on me to
provide a clean, functional and pleasing environment for them to exist
It looked like this: My mother rented
my first house and an elderly couple rented the second one and my duplex
came with an existing tenant who was a hospital administrator, so I was
lucky. I was able to ease myself into the role of landlord without
getting burned early in my career. I now had two houses and a duplex in
the span of about one year. My brothers and some other family members
took notice and were pretty well dumbfounded.
They couldn’t figure out how I had, all
of a sudden, become a real estate wizard.
It felt good to make that change in so
short a time.
I got that from reading a book! And
that my friend is how you are going to do the majority of everything you
do in real estate, by reading and taking steps towards duplicating the
success of others in a repeatable pattern. The key is to understand that
you can do it if you read the right books and apply the very basic
formulas that are handed to you. There lies in: Magic Bullets in Real
This is a common man or woman’s real
estate manual. William Nickerson never gave me anything so easy as
“Magic Bullets!” So I learned trial by fire and it has been very
gratifying. I’ve since went on to collect 17 properties, 23 tenants, 2
real estate licenses in Florida and Alaska, an assistant appraiser’s
certificate and over a hundred books on real estate. I just kept
learning and growing and gaining momentum for the last 13 years. I am
still in the Coast Guard, too, and I work at Alaska One Realty in my
spare time. In two more years, I will be retired at the ripe old age of
42. Sounds like a sort of fairytale, doesn’t it? Don’t let me fool you.
It’s hard work and I’m still not a millionaire, but I want you to have
the truth, so I will be honest with you every step of the way.
I know why I am not a millionaire and
here is why. I would periodically sell property that was going up in
value and paying for itself through the rent checks. But being in the
Coast Guard would dislocate me every four years, so I found myself
selling out in order to avoid being what is called “an absentee
This is an important lesson for you. It
has prevented me from becoming a millionaire up to this point. The
lesson is: find an area on this planet that you could and will live in,
and stay close to it. Don’t move more than 10 miles from your farm area.
The farm area is where all your properties are located. Long distance
“land lording” is tough! It can be done but you lose the ability to
control the situation compared to if you were there. I’ve served my
country and saved people’s lives, so for me it has not been in vain. I
have no regrets but if you don’t have to leave your area of expertise,
The networks you build and the contacts
you build, in the process of “doing” real estate, are so valuable that
when they are no longer at your disposal, it puts you at a serious
Not to mention when you move you have
to acclimate yourself to an entirely different market, build new
trust-based relationships and start all over again. It’s like a
treadmill you’ll be running and running, however it gets you nowhere.
I’ve used it to my advantage. I have
been forced to accelerate my abilities to rapidly duplicate my success
whenever I am moved, but it is still an uphill battle. My point: Don’t
move too far from your farm or your network of bankers, appraisers,
carpenters, tradesman, real estate, friends, tenants and so on. Once you
have the skill you can duplicate your success anywhere you go but if you
don’t have to go…enough said on that!
I like to say, “Don’t sell the goose to
get the eggs.” What that means is if you need money to buy more
property, use equity lines from other property to do it. You will get
the same amount of money or more by using an equity line as if you sold
it. However, you get to keep the asset and the money! I go into this in
“Magic Bullets,” so I won’t drone on here. Just know you don’t have to
sell your property to get the cash out of them.
So here we are. You know a little bit
about me and you may have picked up a nugget or two. Let’s find a few
There once was a man who wanted to buy
some investment property, so what he did was look at growth patterns.
You should do this too, by going to your city’s planning and zoning
department. You can see growth patterns and you definitely want to buy
property that stands in the way of growth.
This is how he used what he learned. He
saw that city planners had decided that a new artery (highway) would
benefit their city by creating linkage to another city about 100 miles
away, so being a smart investor he only went as far as a ten mile limit
to be able to be close to his investment.
Now on average, new growth will radiate
out from existing prosperous cities in the direction it is planned at a
rate of about one mile per year. So our smart investor had a 10 – 12
year plan to cash out in about 10 – 12 years.
What he did was buy, I believe, 10
acres of commercially zoned property very cheaply because there was no
demand at the time. He bought it, fenced it in, put up some lights and a
gate, and held onto that little bugger. Now that new highway was coming
his way and the good folks, through their taxes, were paying to have it
It didn’t take long for the heavy
equipment to start cutting a swath towards his fenced-in storage
facility and when they got close enough to him, he started renting out a
secure area for everything, from road cones to generators to backhoes.
You name it - it was stored there. This more than paid his land off.
Now the men and their equipment
eventually moved on further down the trail but they left a finished
highway behind them. And guess what? Low and behold, people started
driving on it, and then started buying property to build houses on to
get away from the city. Since the new highway was a straight shot into
town, ten miles out was breeze.
Well, of course, here comes the herd
and everyone is just populating the whole darned area. And within ten
years, residential housing surrounds Mr. Investor, and can you guess
what he’s got? Yep, a prime piece of commercial property, 10 acres
So in accordance with his 10-12 year
plan, he sells his storage facility to make room for the new
office/business park complex for over $2,000,000. That, my friend, is
vision, and the sooner you get a clear picture of what it is that you
want to specialize in, the sooner you can retire to the islands.
How hard was that? Don’t tell me you
can’t do it, you can! I’m here to help you. I’m going to give you
secrets no one else dares. Do you ever wonder why people won’t tell you
the secrets? Of course you already know this but I’ll tell you anyway.
It is because they are operating on a scarcity mentality, as though
there won’t be any left for them. Or if learn something and act on it,
you will get ahead and have a great life. Well, misery loves company and
silent oppression is the rule.
Here’s a little story that poor quality
real estate agents won’t appreciate either but I’m going to tell it to
you anyway. The reason I can tell it is because there are some great
real estate agents out there who absolutely don’t fear what I am about
to tell you and would let you know it if they were in my position.
Here’s the deal: Some agents want to be
like the Wizard of Oz. They want to create the appearance of marketing
and transacting real estate as being technical and very legal, a deep
dark mystery. Well, it’s not! The truth be told, you can write a
contract on a napkin and it would stand up in court. I will emphasize
here that you write on that napkin along with the terms of your
agreement, “The terms set forth on this here napkin are subject to my
An attorney will cover you completely
for around $750.00. Prices may vary, however that is an average home
transaction. There is a lot I am leaving out here but my point is this:
If you own property, you can sell it anyway you want. “Magic Bullets”
will teach you. Let’s move on.
Exposure is the key to finding buyers
and sellers in real estate. If a property is priced fairly and everyone
who is looking for that type of property knows that it is in the
availability pool, it will be found and the transaction will proceed as
advertised. Price it right, advertise it properly and let the lawyer
take care of the details. No commission, just a flat fee. Period.
Now that I have that off my chest, I
will tell you a story about Dan, a 21-year old friend of mine, and his
wife and their new baby. He’s a hardworking guy who does his work
without complaint and all the other “workers” pick on him for working so
hard. Can you believe it? The other guys are so insecure and lazy that
they make fun of a guy who is doing the work of three men, mainly of the
three who are ridiculing him. Well, believe me, this doesn’t go
unnoticed by me and I take him under my wing. Dan wants to buy a house,
so I begin the process of saving him years of trial by fire and save him
$25,000 at no charge. That is because he deserved my help.
Anyway, here is the story: I began with
him by asking him what type of home he thought he would be comfortable
with and a price range. He indicated a 3-bedroom for around $100,000.
Knowing what he wanted and knowing the
area, I was able to take him shopping for the house he was looking for.
Now I always go after the “For Sale by Owner” homes first because I know
they won’t be adding any commission figure into their price, because
they won’t be paying one. So at 6% of $100,000 he will get $6,000 more
“house” for his precious dollar.
I also told him besides the “For Sale
by Owner” homes, we would be looking at oddball discount companies that
help distressed sellers further part with their money and property. The
mentality of a seller who uses cheesy companies to help them sell their
property is pennywise and pound-foolish. If you’re going to use
professionals, then get a professional.
So off we go. After a day or so, we
have found our house. Sure enough, El Cheeso Inc. has a sign on it. The
screen doors are flapping in the breeze, the weeds are dancing on the
lawn, but this house is indeed a 3-bedroom, 2-bath, 1-car garage with a
fenced yard and it’s selling for $110,000. Well, due to the fact that
there is a divorce in progress, and a new girlfriend who doesn’t like
the place, and El Cheeso Inc. giving no representation, I negotiate for
Dan and he gets it for $99,000. What’s so great about this deal is this
exact same floor plan in another house was for sale down the street, on
the same street, for $25,000 more.
The moral of the story is good things
come to those who deserve it, and that is another key to real estate.
You must work hard so others will take notice of you and help you
Here’s a beauty for you. This is about
being in real estate circles and keeping your eyes and ears open and
often times your “yapper” closed. This is the story of Brian and Julie.
Here we have two hardworking souls. They have been married for 20 years
and they have weathered the storms of matrimony. Julie works at a real
estate office as an office manager. No real estate license, but she
works at an office that sells a lot of waterfront property. So we are
talking about location and being in the right place at the right time,
and here comes a seller in the door of the office stating she is going
to sell her older waterfront home. She is willing to take $180,000.
Julie tells Brian, they look at it and
sure enough, this pearl is right on the water. She’s a gem waiting to be
polished up, so Brian and Julie sell their condominium and move in.
Well, they aren’t making any more waterfront property, so Brian goes to
work polishing this jewel up.
Now, they have bought this house under
market value in an appreciating market. So about one and a half years
later, this property is worth over $350,000 and still climbing. Well,
Brian is no dummy, so he gets to know his neighborhood. He strolls,
takes walks and notices, you guessed it, a vacant, neglected jewel on an
inside double lot. He tracks down the elderly lady, who is living with
her sister, through the county records office and buys the house,
including the extra lot, for a total of $120,000. Now Brian can walk to
his new “jewel” and he starts polishing it. The neighbors start noticing
and are amazed at his deal. He has offers of $180,000, $200,000 and
$60,000 for just the lot. You name it. Now that the exposure is there,
everyone wants a piece of it.
Well, this is what Brian did. He rented
his first house out, moved into the second one and used plans that I
gave to him to build a third house on the vacant lot, using the equity
he accumulated from the first house that went up so much. And here’s how
this thing shakes out: $180,000 for his first house and it’s value goes
up to $365,000; he picked up the next jewel for $120,000 and he paid
cash using the equity from the first house. Now he takes out a new
mortgage on his second house for $120,000 and builds a third. The value
at last count was $815,000 and he owed a grand total $300,000. That’s a
half million-dollar profit in 5 years!
Now what does this story tell us? #1 –
it says, “work hard”; #2 – keep your eyes open; #3 – use equity lines;
#4 – don’t sell; #5 – learn how to be a landlord; #6 – be in locations
that appreciate; #7 – buy things that are limited in availability; #8 –
know how to research owners and repair property; #9 – get your partner’s
help (spouse); #10 – use knowledgeable friends to help you see potential
(I gave him the plans and advised him not to sell anything!).
Can you get any more lessons out of
this story? I’m sure you can. Just read it again and think on it. Jot
down your ideas and put them to work. Real estate is not that hard,
folks! You can do it. With a few magic bullets, some spark plugs and a
good mentor to show you how, you can do it too!
Let’s you and me talk for just a minute
here, OK! Have you ever been really good at something and been able to
step back and see the whole thing for what it is was? You just know
exactly how to do it and you can see the end result clearly in your mind
before you start. It’s predictable to you. It’s almost second nature, so
you are comfortable doing it. It’s almost become boring to you; your
comfort zone is such that you can do it in your sleep.
I’ve gotten that way with certain types
of real estate and I see people everyday that are so afraid of taking
the first step that they are literally paralyzed. They make excuses and
put it off, and rationalize and live a quiet life of desperation. They
don’t trust themselves and as a result of the unknown they can’t trust
anyone else either. This is a vicious cycle because the longer they wait
the more it reinforces their beliefs.
I just want to grab them by the collar,
take them to the bank and make them tell the banker, “Pre-qualify me!”
Then walk them out the door and show them how to do something that will
change their life forever, and that is to buy the first property, and
then a second. Then their fear is gone and they grow to be of service to
everyone who is ready for their assistance.
Let me tell you this: After you finish
reading the rest of this report and you read the “Magic Bullets” book,
your fears will be subdued and you will do something and your life will
change. If you cannot succeed with what I am intent on showing you, then
something is not right. I believe your desire would be your major
obstacle, so if that’s the case, read “Think and Grow Rich” by Napoleon
Hill and come back to me then.
Let’s get back to real estate
education, shall we? Do you know who the largest commercial real estate
owner in the U.S. is? It’s McDonalds Corporation. Yep, and on top of
that, they also have the most valuable locations for their type of
business. The research they do on demographics and traffic counts is
If you were ever going to open a fast
food restaurant, just put it near a McDonalds. You would survive just on
the volume of people who flock or pass by the location that McDonalds
has already decided meets all the critical data to support their
restaurant business. Your restaurant, if you had good food and service,
would flourish. Just sell something a little different than McDonalds.
That’s leveraging someone else’s expertise in evaluating a location for
a certain type of real estate.
Now that is a principle and principles
are like natural laws. A natural law always works in every situation in
its own way. It’s like gravity – it always works! Here on earth, anyway.
So in real estate it doesn’t matter
what type it is, whether it’s commercial, residential, industrial or
recreational. Look for signs that serious market studies have been
undertaken by major operators and buy things that can flourish in the
presence of those concerns.
For instance, let’s use Home Depot as
an example. If Home Depot decides to build on a site, every residential
lot within a mile of that new center will be bought up as soon as the
Home Depot commits to build! Why?
Because smart investors know that Home
Depot has done the market study and the area will be a prosperous one.
On top of that, it will provide jobs,
it will pay taxes, it will provide materials to actually build the
neighborhoods with, and people will shop there once their houses are
built. The same goes for Wal-Mart, Lowe’s and other smart business
You may or may not have noticed this
but take a look the next time you are driving around. Here is what you
should see. As you drive into cities from the suburbs, you’ll notice
donut shops, gas stations with convenience coffee centers, bagel shops,
and etcetera, on the side of the road that people travel to on their way
into the city to go to work. These are morning activity business
centers. Now on your way home, out of the city, you will see restaurants
that cater to the evening meal crowd: KFC, Taco Bell, Subway and Pizza
Hut. That’s because people don’t go there for breakfast. They get it on
their way home, outbound from the city at night. If you put your
restaurant on the wrong side of the road, you could be making a huge
strategical error. Think!
Location, location, location as they
say, are the 3 most important things in real estate. That is a very true
statement. With residential property, that boils down to safety,
security and convenience. So buy homes in good neighborhoods,
cul-de-sacs preferably. No noise or through traffic, no escape routes
for thieves, and a private setting, where kids play in the street
without getting run down.
Security = close to hospitals, police
and fire protection for obvious reasons.
Convenience = stores, gas stations,
restaurants, small businesses, parks and recreation and access to major
highways to circulate or evacuate if necessary.
You might get a great deal on a piece
of properly but if it takes you a half hour to get a loaf of bread. What
kind of resale will that great deal offer? Another great deal may back
up to or face a busy street. That’s often a poor choice as well…noise,
pollution, the loss of privacy and curb appeal are all factors here.
The two best types of property to buy
1. Property that no one else knows is
for sale! Why? Because you have no competition.
2. Property no one wants! You just have
to figure out why people don’t want it.
If you can turn that lemon into
lemonade through some problem solving, that
jewel may just shine because you used
the right magic polish.
In real estate, you get paid when you
solve problems. That is a fact!
Here is a golden nugget for you. If you
do this, it will catapult your real estate investment career. I
guarantee you will gain more insight to real estate by doing this one
thing than just about anything else you could possibly do. The golden
nugget is this: Take a real estate appraisal course. It will fly by, a
few weekends and it’s over, but the perspective and the information you
gain from the class is priceless. It gives you vision, ideas and
understanding. You will have an edge over every other investor who has
not done it.
I had an instructor, who by some stroke
of luck, I was privileged to be taught by. His name is Steven V. and he
is truly a genius. This guy could make millions if he applied himself to
real estate investment but he chooses to teach and give back to others
in that way. He is very comfortable in life and money is a by-product
for Steven. When I finished the class, I had appraisers wanting to hire
me to go to work. Now I don’t want to work as an appraiser. I just want
to think like one and that is why I took that four-weekend course. That
class taught me more than both of my real estate licensing courses
combined. The reason for that is real estate classes deal with state
laws, contracts, regulations and ethics. Appraisal focuses on evaluating
real estate and that is what you want to learn as an investor.
A real estate license can actually hold
you back from being a savvy investor and here’s why: #1 – You have to
announce to every seller that you are an agent. It’s an ethics rule and
a disclosure law. Well, now the seller is on guard for all kinds of
reasons and you waste precious time overcoming negative reactions. #2 –
When you go to sell your real estate, the same things apply but add to
that scenario the fact that if you make large profits on property that
you sell, people can come after you, saying you took advantage of them
because of your expertise. And they win!
So you don’t need to go to college for
4 years and you don’t need a real estate license. What you do need is a
guy like me to convince you to go to appraisal school and read books
like the one you have now.
Then go out and do it, using a lawyer
to protect you every step of the way. Again, here is a good point to
make. Simply weave into every agreement or offer you make the following
statement: This entire agreement is subject to my attorney’s approval. I
can’t stress that enough. That’s one line of text. That covers it all.
It gives you time to investigate deals. It protects your interests and
keeps you from getting burned in this business.
Here are a couple more beauties that I
use to protect myself and you should too. These are used with initial
1. Willing to pay X amount of dollars
or appraised value, whichever is less. (That says, “I’m only going to
pay so much but if the appraisal is lower than
what I offered, than I am going to get
it for the lower price. I don’t get
burned!) 2. Subject to my partner’s
approval. (My partner was always my wife, and if she
didn’t like it, the deal was null and
void, cancelled, over, kaput, finito.)
Now nothing says my partner wasn’t my
dog, so if there’s no fire hydrant, well the deal could be off.
Those are examples of escape clauses
that could be abused to the point of being called “weasel clauses.”
Don’t be a weasel! They give you a short period of time to have the
option to buy something first with the right to cancel the deal,
contingent upon something or someone else’s decision.
I use them to protect myself and to get
a little time to do my research on the property. Don’t use them to
unfairly tie a seller’s hands. Be fair and try to move quickly when you
do employ them. What you are doing is creating a short time, zero-cost
option to buy real estate. Here is a little trick and I don’t use it
very often but it can be used in a fair manner so I will give you the
nugget. When you write an offer to purchase property, on the top line of
the contract is a line that indicates who the buyer is. On that line in
certain cases, I will write my name plus the words or assigns, like
this: Buyers: Dan Auito or assigns
What that word “assigns” does is this:
it allows me to sell by assigning my right to buy the property to
someone else. Dirty dealers will take advantage of people with that word
if they can get away with it.
Here’s where I would use it. In real
estate, a lot of bargain hunters look for distressed property. You know,
the fixer-uppers, the abandoned, condemned, fire-damaged stuff. I go a
step further and look for distressed sellers such as death, divorce,
relocation, but a lot of times I don’t specialize in that type of
That’s OK because if it’s a steal and I
get it for 40 – 50% off, I will assign it to someone who does deal in
that type of property and make a profit by assigning it.
I’ll always ask the distressed seller
if that is a problem and if it is, I will buy it outright, then flip it
but it costs more to do that. So I’ll explain this to the seller and get
their permission to use it. I don’t slip it in on them. You will have a
miserable existence if you practice real estate by deceit. Natural law
will crush you; play fair! Purpose, passion and desire cannot be
achieved or acquired by deceit. That’s a quotable quote. I hope you
Let’s get on with another story. This
illustrates another fine example for you. This story is about a family
who had business interests outside of real estate investing and as a
result of the successes of their other businesses they had fairly large
sums of money to play real estate like a monopoly game. Power can be
dangerous in the wrong hands!
So here we go. This flush with cash
family sees an opportunity to take advantage of an overlooked or left
alone market. That market is the old-fashioned trailer park, or shall we
say Mobile Home Park.
Anyway, the way most mobile home parks
came into existence was this: Usually a man of integrity and strong work
ethic coupled with a love for his fellow man would buy a piece of land
suitable to the placement of mobile homes. As people moved in, he and
his wife would welcome them and the neighbors would greet them and the
community would become established.
The private owner would dig his own
sewer lines and cut his own roads and landscape the park. Maybe put in
the clubhouse complete with a swimming pool, shuffleboard, pool table
and meeting hall. As time marched on, the residents bonded with each
other and a family-friendly community took root. Well this man of
integrity had a problem. Since all of his tenants are his friends, he is
pressured not to raise the lot rents with inflation.
So the rents over the years are kept
very low in the park and now this man and his wife are getting old.
Perfect timing for our investors to come knocking and offer our private
aging park owner a 2 million dollar price for his 10 acres of mobile
home lots. This is a once in a lifetime offer and many park owners
What people didn’t see was these
investors were systematically and methodically doing this all over the
place and once they cashed out as many mom and pops as they could, they
lowered the boom.
Now they the investors had control of
many parks in the same areas and they started raising the lot rents. You
see, they didn’t have any emotional ties to the residents and they
didn’t live there, so it was a straightforward business deal: either pay
the new higher rent or move.
The residents said, “To hell with you
new owner, we are moving.” “Well, fine, go ahead,” they said. Now the
residents started calling around to find another park with low rents but
guess who owned those? Yep, our investors did, and those lot rents were
going up too. So the mom and pops who didn’t sell were full and it would
cost on average of about $7,000 to relocate to another park even if they
could find a vacancy.
The old folks who had it so good for so
long were faced with a new reality and that was that they had no choice
but to pay up or move, and moving, in many cases, wasn’t an option.
These investors exploited a complete segment of the market and made
millions and millions in profit and continue to do so today.
It wasn’t long after this happened that
you started seeing signs saying, “This is a resident owned community.”
People eventually got smart and started buying that little lot that
their trailer was sitting on and they began paying association dues for
the clubhouse and security and grounds, maintenance and road repair. The
good ole days are nothing but a fond memory.
Life goes on but America did not change
for the better as a result of these types of people. Their only purpose
was to make money; I believe they will die alone and in misery as a
result of their way of life.
So I ask you again, can you be
passionate and put your heart into investing in real estate by investing
the way our corporate investors did? I think not. Money is no good when
you get it by deceitful ways. I encourage you to work at balancing your
objectives. Lease optioning, flippers…you are walking a fine line.
Here’s a flip side to communal living.
This story is a happier scenario, so let’s have a little joy here. I
once lived in Key West and I lived off base. Well, I thought I lived
next door to Noah, and it sounded as though he was building another ark.
All summer long, hammers and saws seemed to be making some type of
racket, so naturally being the neighbor I was, I got to know the man
next door. He never went to work and I asked him one day, “Don’t you
have a job and he kind of grinned and put his hammer down and this is
Mark and his brother were from the
Northeast and they had a 30-room boarding house for college kids there,
at something like $300.00 a month. That was about $9,000 a month and
they made the parents responsible for the rent payments. Mark would
spend his time with his family in the Keys for the nine months that
school was in session. His brother was a local up North and he took care
of the toilets, faucets, doors and windows. Yes, they had their very own
animal house going on there, but Mark factored in the abuse and would
spend 2 – 3 months a year, putting the animal house back together while
the animals went home for summer break.
Mark only worked three months a year
and the house (ark) that he built next to us was a masterpiece; it was
beautiful. He was a master craftsman and he loved his work and spent a
lot of his time with his family in a wonderful climate. Makes you kind
of jealous, doesn’t it? Well, don’t let it because you can do it, too,
but you must get started. Mark was 45 when I met him. I believe he was
25 when he got started, so my advice to you is to get started now!
Dan Auito is a dual-licensed real
estate agent and appraisal assistant. In addition to being a 20-year
veteran of the United States Coast Guard, Dan has also founded a
non-profit drug prevention corporation, a real estate consulting group
and is the author of “Magic Bullets in Real Estate.” This 300-page
power-packed book (due out in late Sept 2004) comes with a website (on
line in late Sept 2004) that further supports its readers. Please visit
with the family at
http://www.magicbullets.com we look forward to seeing you!